BP, Shell among bidders in $800 million Brazilian oil auction

10/10/2019 16:18 Oil Market

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BP Plc, Chevron Corp and Royal Dutch Shell Plc are among the companies that will compete for exploration and production rights off the Brazilian coast on Thursday, in the first of three oil bidding rounds scheduled for coming weeks.

Combined, the minimum signing bonuses for the blocks in the so-called 16th post-salt oil bidding round in the Latin American oil powerhouse come to roughly $800 million.

 

That is significant by historical standards, but pales in comparison to Brazil’s so-called transfer-of-rights bidding round and 6th pre-salt round, both scheduled for early November. Those rounds are expected to bring around $25 billion and $2 billion into government coffers, respectively.

 

The post-salt blocks are less prolific than the pre-salt blocks, where billions of barrels of oil are trapped under a thick layer of salt beneath the ocean floor.

 

Still, there are some prized areas in the 16th round, particularly in the Campos and Santos Basins off the coast of Sao Paulo and Rio de Janeiro. One block in particular, the C-M-541 in the Campos Basin, has a minimum signing bonus of roughly 1.375 billion reais ($335 million) and directly borders the pre-salt region.

Source: reuters.com

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